Definition
QE lowers longer-term interest rates and supports asset prices. QT does the reverse. Both are used when the policy rate alone is not enough or has reached a limit.
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A central bank buying bonds to add money to the system (QE), or letting them run off to remove it (QT).
QE lowers longer-term interest rates and supports asset prices. QT does the reverse. Both are used when the policy rate alone is not enough or has reached a limit.
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